Bill to make the Sports Incentive Law permanent has unanimous approval in the Chamber

BRASILIA - The Chamber of Deputies approved this Monday, 14th, by 471 votes in favor and none against, a complementary bill (PLP) that makes the Sports Incentive Law permanent, with incentives and benefits for the promotion of sports activities.

The project sets out the conditions and limits for the granting, expansion or extension of tax incentives by the Union , the Federal District and municipalities.

The bill will go to the Senate . The text provides that incentives related to Income Tax (IR) may be granted, expanded, or extended at the federal level, and the Tax on Circulation of Goods and Services (ICMS) and the Tax on Services (ISS) at the state, municipal, or district level.

Amounts spent as sponsorship or donations in direct support of sports and parasports projects approved by the Ministry of Sports may be deducted from income tax.

According to the bill, deductions are limited to 3% of income tax for legal entities and 4% for sports projects aimed at social inclusion through sports, especially in socially vulnerable communities. By 2027, the limit will be 2%.

Legal entities will not be able to deduct amounts for determining real profit and the calculation basis for the Social Contribution on Net Profit (CSLL) .

Furthermore, the deduction is limited to 7% for individuals, and 6% until 2027. The incentives do not exclude or reduce other tax benefits and deductions in force.

Without this law, the sports tax incentive policy could be discontinued, as it must be renewed every five years. In 2022, the law was renewed until 2027. According to information from the Chamber of Deputies, the law has raised R$6.3 billion for sports since its creation in 2006—last year alone, the amount raised reached R$1 billion.

The unanimity surrounding the project was reflected in speeches by government and opposition deputies, who even took photos together.

Speaking to Estadão/Broadcast Político , rapporteur Orlando Silva (PCdoB-SP) said there will be no fiscal impact from these benefits. "Year by year, the budget legislation projects how much tax spending will be allocated to sports incentives. The government sets the limit. Last year, R$1 billion was authorized. In 2025, it depends on what the budget law provides. Therefore, there will be no budgetary impact, because the impact is defined by the LDO and LOA," he stated.